The Czech food group Hame will produce and distribute canned-meat products under the brand name of Hungarian canned-food company Globus beginning in mid-July, Globus informed MTI.
The Czech newspaper Hospodarske Noviny reported on June 19 that Hame, the largest food group in the Czech Republic with sales of €5 billion in 2008, had purchased the Hungarian company's meat-processing unit for an undisclosed price.
Globus noted that Hame will distribute only canned-meat products under the Globus brand name.
MTI reported in March that Globus had decided to stop producing and marketing meat-based products, which generated 20% of the company's revenue, as a result of a sharp decline in demand, a continuous deterioration in the company's operating environment and a drastic increase in packaging costs. Globus told MTI on Wednesday that in the future the company will focus operations on its two largest product groups - frozen and canned vegetables.
The Globus Group sustained losses of HUF 2 billion (€7.1 million) on revenue of HUF 26.9 billion in 2007. The company released no information regarding its 2008 results.
Hame operates a subsidiary in Hungary, Hame Hungária, in addition to company units Russia, Poland, Ukraine, Romania and Slovakia. (MTI – Econews)